7. COMBINED EARNINGS PER SHARE

The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held as treasury shares.

In calculating diluted earnings per share and underlying earnings per share, a number of adjustments are made to the number of shares, principally, the exercise of share options by employees.

Underlying earnings per share is calculated as underlying profit attributable to shareholders’ equity divided by the diluted combined average number of share units. In calculating underlying profit attributable to shareholders’ equity, net profit attributable to shareholders’ equity is adjusted to eliminate the post-tax impact of non-underlying items in operating profit and any other significant unusual items within net profit but not operating profit.

Earnings per share for total operations for the 12 months were as follows:


	€			€			€
	2018			2017			2016
Basic earnings per share		3.50			2.16			1.83
Diluted earnings per share		3.48			2.15			1.82
Underlying earnings per share		2.36			2.24			2.03

	Millions of share units
Calculation of average number of share units	2018			2017			2016
Average number of shares: NV		1,714.7			1,714.7			1,714.7
PLC		1,264.0			1,310.2			1,310.2
Less treasury shares held by employee share trusts and companies		(295.4	)		(223.3	)		(184.7	)

Combined average number of share units – used for basic earnings per share		2,683.3			2,801.6			2,840.2
Add dilutive effect of share-based compensation plans		11.5			12.4			13.7

Diluted combined average number of share units – used for diluted and underlying earnings per share		2,694.8			2,814.0			2,853.9

				€ million			€ million			€ million
Calculation of earnings	Notes			2018			2017			2016
Net profit					9,808			6,486			5,547
Non-controlling interests					(419	)		(433	)		(363	)

Net profit attributable to shareholders’ equity – used for basic and diluted earnings per share					9,389			6,053			5,184
Post tax impact of non-underlying items		3			(3,024	)		262			601

Underlying profit attributable to shareholders’ equity – used for underlying earnings per share					6,365			6,315			5,785